Nissan To Cut as Many As 20,000 Workers In Face Of Record Losses
With record losses in sight, Nissan plans to cut up to 20,000 employees globally and close down several factories.
Key Points:
- Nissan announced in November plans to cut 9,000 jobs in the wake of declining sales. New reports from Japan suggest that number will swell to 20,000. That equals around 15% of its global workforce.
- The Japanese automaker is expected to post a loss of as much as $5.2 billion for the financial year that ended in March. That would be a record loss for Nissan.
- In addition to the job cuts, Nissan abandoned plans to build a new plant to produce batteries and said it will close three current factories.
Just months after naming 20-year company veteran Ivan Espinoza to the role of CEO, Nissan is expected to announce record losses, cut its workforce by as much as 15% and shut down or halt plans for several production factories. In November, the Japanese automaker said it would trim its workforce by 9,000 jobs, but a new report from Japan’s public broadcaster NHK pegs the number at 20,000.
Nissan, which walked away from negotiations with Honda after its potential partner floated the idea of making Nissan a subsidiary, announced an aggressive restructuring plan earlier this year. The plan includes cost cutting and a lot of new products to replace what’s currently an aging and lackluster lineup.
While official figures have yet to be announced, Nissan is forecasting a record loss for the financial year that ended in March. The losses could equal as much as 750 billion yen, which equals around $5.2 billion in U.S. dollars.
Growing up in a family obsessed with performance and as the son of an automotive engineer, Jeremy Korzeniewski has spent his entire life as a car enthusiast. Also an avid motorcyclist, Jeremy has spent the last two decades writing about the transportation industry and providing insights to many of the largest automotive publications in the world.
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Small manufacturers like Suzuki have found markets throughout the Globe; Nissan/Datsun had had Global presence but the mismanagement over 20 years has taken its toll. Utter failure to retain great managers & engineers has been this company's downfall. It doesn't help when you have the company President run off like a Junta dictator into the night.. despicable.
Failure to bring to market RELIABLE & affordable vehicles to sell was a long standing mistake. They needed a few halo cars like a 240Z again but they lost their way. Nissan will go the way of the Pontiac Division. Very sad.
Hmmmm,,,, so Nissan didn't want to be a functional subsidiary, but will entertain going bankrupt instead?
I've owned SPL310's and 510's and they were fantastic, but they have done nothing in the last 50 years that would entice me to buy the overpriced and underpowered CVT tranied products they have been putting out.